Alternative Investment Update 6/8/2018

On June 5, 2018, The Parking REIT, Inc. (TPR) announced that chief financial officer Ed Bentzen had agreed to end his employment with TPR effective June 1, 2018. The board of directors (the Board) of TPR appointed Brandon Welch, the son-in-law of TPR’s chief executive officer Mike Shustek, as chief financial officer.

On May 31, 2018 the Board appointed Bill Wells to fill a vacancy left in the wake of Allen Wolff’s resignation effective April 29, 2018, as a member of the Board. TPR noted that they believe Mr. Wolff’s resignation stems from Mr. Wolf’s disagreement with the Board’s decision to allow Mr. Shustek to remain as chief executive officer and as chairman of the Board. Mr. Wolff had indicated that in the wake of the independent investigation into possible wrongdoing by Mr. Shustek regarding potentially inaccurate disclosures by TPR’s affiliated broker-dealer regarding total underwriting compensation paid to MVP Realty Advisors, LLC, (TPR’s advisor) and potential inaccuracies regarding Mr. Shustek’s personal financial statements that were provided to TPR’s lenders in connection with mortgage loans on TPR’s assets. The audit committee concluded that Mr. Shustek did not exercise proper judgement or appropriate oversight in both matters.

Mr. Wells served as the managing partner of RSM US LLP’s (RSM) Las Vegas office from 1990 to April 2018. Note that RSM served as TPR’s auditing firm from May 18, 2017, until its April 29, 2018, dismissal by TPR.

On June 1, 2018, Benefit Street Partners Realty Trust, Inc. (BSP Trust), formerly known as Realty Finance Trust, Inc., announced that it had entered into an agreement to sell $75.8 million in Series A preferred stock to an undisclosed institutional investor and an undisclosed individual investor (collectively the Investors). The Series A preferred stock is priced at $5,000 per share and features a monthly dividend of the greater of $16.66 per share or the monthly dividend if the preferred shares were converted to common stock. The Series A preferred stock converts into common stock at a ratio of 1-299.2 in the event of a liquidity event, such as a listing of BSP Trust’s common stock on a securities exchange or a merger. The conversion rights are subject to change if certain events occur, including common stock splits amongst others. A thorough examination of the Series A preferred stock is outside the scope of this review.